Kieran Maguire: Glazers face ‘penalty clauses’ at Man United amid £65m reveal
The Glazers need to stay on top of the loan debt at Old Trafford to avoid facing significant fines at Man United.
That is the opinion of finance expert Kieran Maguire, who spoke exclusively to Football Insider about the potential punishment facing the Glazers because of their loan deals with the Red Devils.
The Glazer family bought Man United for £790million back in 2005, but the deal to purchase the side was highly leveraged and loaded debt onto the club.
Red Devils fans have criticised the owners for their handling of finances behind-the-scenes, with the club boasting no debt before their takeover, while the net debt in the latest financial report was £515million.
Amid attempts by several firms to complete a full takeover of United, multiple private equity groups have also been linked with deals to help finance the redevelopment of Old Trafford, which will likely cost up to £2bn.
Maguire believes United remain successful as a “cash cow” but insists the Glazers have to be careful managing their debt to avoid “penalty clauses”.
“All loans tend to have strings attached in order to be secured,” Maguire told Football Insider.
“If you take a look at Manchester United’s loans at present, if Man United’s EBITDA [Earnings Before Interest, Taxes, Depreciation, and Amortization] is less than £65million, there are penalty clauses.
“But United as a cash cow are actually still very successful and that will be attractive to investors.
“They always achieve that target of being financially successful.“
In other news, new Man United owners are set to approve a £235m-plus deal as talks are imminent